NOTICE OF SUMMARY ACTION

FILE NO.:

NYMEX 20-1278-BC

MEMBER FIRM:

IGNITE ENERGY LLC

NYMEX RULE VIOLATION:

Rule 526. - BLOCK TRADES

The Exchange shall designate the products in which block trades shall be permitted and determine the minimum quantity thresholds for such transactions. The following shall govern block trades:

F. Unless otherwise agreed to by the principal counterparties to the block trade, the seller, or, in the case of a brokered transaction, the broker handling the block trade, must ensure that each block trade is reported to the Exchange within the time period and in the manner specified by the Exchange. The report must include the contract, contract month, price, quantity of the transaction, the respective clearing members, the time of execution, and, for options, strike price, put or call and expiration month. The Exchange shall promptly publish such information separately from the reports of transactions in the regular market.

CME Group RA1906-5:

Block Trade Submission Requirements to CME Clearing (Section 7, In Part)

The execution time of a block trade is the time that the parties agree to the trade. Market participants must accurately report the execution time of the block trade. The reporting of inaccurate execution times may result in disciplinary action.

FINDINGS:

On August 20, 2020, pursuant to NYMEX Rule 512 (“Reporting Infractions”), the Chief Regulatory Officer’s designees issued Ignite Energy LLC (“Ignite”) a $2,000 summary fine. In issuing the summary fine, the Chief Regulatory Officer’s designees determined that on several occasions between December 2, 2019, and December 24, 2019, Ignite Energy LLC (“Ignite”), acting in its capacity as broker, reported block trades to the Exchange with inaccurate execution times. These block trades were executed in various Natural Gas and Crude Oil Options. The Chief Regulatory Officer’s designees concluded that Ignite thereby violated NYMEX Rule 526.F.

On appeal, on December 9, 2020, the New York Mercantile Exchange (“NYMEX”) Business Conduct Committee (“Panel”) affirmed the decision of the Chief Regulatory Officer’s designees finding Ignite guilty of violating NYMEX Rule 526 and affirmed the issuance of the $2,000 fine imposed pursuant to NYMEX Rule 512.

PENALTY:

The Panel ordered Ignite to pay the $2,000 fine. 

EFFECTIVE DATE:

December 28, 2020